Coinbase, Launching bitcoin interest fund for institutions…Annual 4~8% profit goal

Coinbase launches a bitcoin-based interest fund targeting institutional investors outside the United States. Coinbase announced through its official blog that it will introduce the 'Coinbase Bitcoin Interest Fund' on May 1st. This fund aims for an annual net profit of 4-8%.

Coinbase explained that "demand for bitcoin returns is rapidly increasing among institutional investors," emphasizing that this fund is a product to meet such demand. The fund will generate earnings using a 'cash and carry' strategy that leverages the price difference between physical bitcoin and derivatives prices.

Especially, this product is expected to involve various institutional investors, including Aspen Digital, a digital asset management company approved by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi, aiming to minimize investment and operational risks through this participation.

Coinbase plans to complement the limitations of existing bitcoin yield products and provide a more stable investment alternative through this fund. Considering that bitcoin has no staking structure and thus has limitations in profit generation, the method of reducing counterparty risk by adopting a third-party custody method that performs transactions without moving assets externally was chosen.

As large-scale inflows into the US bitcoin spot ETF have recently occurred and institutional investors' buying sentiment is recovering, attention is being paid to the impact of Coinbay's fund launch on the market.